Since our previous analysis, gold has been trading downwards. The price tested the level of $1,338.34 in an ultra high volume (climax). According to the 30M time frame, there is massive climax in the background and successful testing of supply, which is a sign that selling looks very risky. Climatic action represents panic reaction usually due to bad news, it can also represent profit taking by sellers. So, watch for buying opportunities on the dips. The first take profit level is set at the price of $1,353.00.
Daily Fibonacci pivot points:
Resistance levels:
R1: 1,358.30
R2: 1.362.30
R3: 1,368.90
Support levels:
S1: 1,345.20
S2: 1,341.15
S3: 1,334.60
Trading recommendations for today: Selling gold looks risky at this stage. So, watch for potential buying opportunities.
The material has been provided by InstaForex Company - www.instaforex.com